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Blue Company had the following transactions during the month. Prepare journal entries to record these transactions. Blue Company uses the percent of receivables method of
Blue Company had the following transactions during the month. Prepare journal entries to record these transactions. Blue Company uses the percent of receivables method of accounting for uncollectible accounts and a perpetual inventory system. The normal beginning balances (1/1/2021) for Accounts Receivable was $372,000 and for Allowance for Doubtful Accounts was $40,920. 1) Merchandise costing $3,330,000 was sold on account for $5,900,000. 2) The company collected $5,650,000 from customers on account. 3) $120,000 of accounts receivable were deemed uncollectible and written off. 4) At year-end, Lily Company estimates that 12% of its accounts receivable are uncollectible
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